“Support to companies where market failures are not evident risks leading to inefficiencies, reduced competition and, hence, worsened consumers’ choice, and distracts the allocation of both capital and employment and increases prices in the long run,” the letter, seen by The Irish Times, reads.
There has been a boom in the amount of state aid being notified to the commission since the pandemic, with the bulk of it coming from France and Germany – a matter of concern to smaller member states who feel they cannot hope to match such measures. European Commission president Ursula von der Leyen has suggested that the EU should introduce a “bridging solution” to persuade businesses against moving to the US, while loosening state aid rules and introducing a European Sovereignty Fund to boost strategically important sectors.But the letter pours cold water on ideas for fresh borrowing, noting that there is still unspent grant money among the EU’s jointly funded Covid-19 stimulus funds.
It also advocates against “unnecessary trade tensions” with Washington, describing the US as “an exceptionally important partner for the EU”.
I haven't quite decided how I feel about this yet, but I wonder how EamonRyan feels about mmcgrathtd 's anti-green funding credentials? LeoVaradkar MichealMartinTD MaryLouMcDonald rtenews Independent_ie irishexaminer thejournal_ie wereontheditch